As the UK's Spring Statement nears, small and medium-sized enterprises (SMEs) demonstrate a strong desire to invest, with 87% planning investments and two-thirds expecting sales growth. However, economic uncertainty is causing a significant number to postpone major decisions. Almost half of SMEs are holding off investments until after the Spring Statement, with many citing the need for greater stability. Rising National Insurance contributions from previous announcements are also cited as a deterrent. A distinct divide exists between businesses relying on external funding, which show greater confidence in investing compared to self-funded businesses.
UK businesses are showing a clear appetite to invest, but many are taking a wait-and-see approach ahead of the Spring Statement.
Without this stability, the Government's plan to kick-start economic growth is at risk.
More than half of SMEs say they are less likely to invest in the short term, citing rising employer National Insurance contributions as a key factor.
While only 6% of SMEs using external funding have no investment plans, this figure more than doubles to 14% for those that are self-financed.
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